Mumbai

The Maharashtra Legislative Assembly on Wednesday was informed that the state government has ordered an inquiry into alleged irregularities in a land tender process in Malad and directed that the project be put on hold until the probe is completed.

Minister of State for Urban Development Madhuri Misal said the inquiry will be conducted by an additional chief secretary, with instructions to be issued to the municipal corporation accordingly.

The issue was raised by Congress MLA Aslam Shaikh, who alleged large-scale irregularities in a Project Affected Persons (PAP) housing scheme in Malad (East). BJP MLAs Yogesh Sagar and Murji Patel also raised concerns.

Shaikh claimed that the land, originally reserved for police housing, was diverted for PAP tenements and that the cost per unit was increased significantly—from ₹32.21 lakh to ₹50.98 lakh—resulting in an additional burden of around ₹618 crore.

He further alleged that land valuation was raised sharply without fresh assessment and questioned the grant of Transferable Development Rights (TDR) and premium payments in advance, suggesting possible collusion.

Opposition members demanded a high-level probe, suspension of the revised Letter of Acceptance, and action against officials involved.

Responding to the allegations, Misal denied any wrongdoing, stating that the project complies with the Development Plan 2034 and all applicable regulations. She said 40 per cent of the land is allocated for police housing and 60 per cent for PAP units, with revised costs based on updated valuations approved by authorities.

Maintaining that due process was followed, the minister asserted that the tender process was transparent and payments were made in stages as per norms, even as the government proceeds with an official inquiry.